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Free Zones

Contents
Introduction
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4
The minimum requirements of setting-up a company in the UAE
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5
More economical free zone
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6
Conclusion:
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9

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Introduction
There is different number of free zones which was established in UAE
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The UAE
Companies Law (as amended by Federal Law No
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Exempt companies include those established in Free Zones to the
extent that each Free Zone has alternative regulations
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And
according to the World Federation of Free Zones, a free zone is a portion of
clearly defined and isolated land or setting, with a special tax, customs and
imports regime, usually involving a status of extr a-territoriality
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A local company can only be established in the UAE provided its sponsor, a UAE
national, holds at least 51% of the company shares
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On the other hand, each free zone has its own set of laws
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There are slight differences between the entities
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Free Z one Company has
2 to 5 shareholders
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Free Zone Limited Liability Company
– Corporate (FZ LLC) is a company incorporated by a corporation and
whereby the shareholder of the FZC is a company
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The cost of your
free zone business set-up will depend on the following factors:

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

Nature and size of your operations
Allocated budget
Visa requirements
Size and rent cost of the office
Requirements of the business

Since free zones are not considered part of the UAE market, you cannot trade
directly
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The average minimum investment for a business set-up in most free zones is
around AED 150,000
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In any case, it is possible to find the most
appropriate set-up cost in the free zone or avoid minimum capital investment
by incorporating an offshore company
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The disadvantages are as following:

1
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All
countries within the zone would be competing with one another for the same
consumers
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Increased Unemployment
o

6

Because of the increased competition, some countries may appear to have
gained some degree of competitive advantage against others
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For
instance, the North American Free Trade Zone includes United States, Canada
and Mexico
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3
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This
competition can also lead to another issue: restructuring
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Restructuring is an expensive
endeavor; it may involve the corporate management team, ownership, or the
operational aspects of the firm
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Economic Underdevelopment
o

7

Free trade regions may also impact some regions more than others in terms of the
level of economic development
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Underdevelopment
could also impact the country's gross domestic product and depress the country's
total exports as a result
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So the UAE should make more studies and researches to try to fix the problems rising up with the
huge development they have in the trade and economy field
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hmlc
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html
2- http://ilovetheuae
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com/business/investment/uae-free-zones-prove-attractive-to-globalfirms-1
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uaefreezones
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dubaifaqs
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php
6- http://www
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ae/en/index

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